• Localised food systems: markets and distribution networks with min. environmental impact & max. social gain
• Why of interest? Producers: economic, volume markets, resilience; Consumers: good food at affordable prices; Partnership working; Viable supermarket alternative;
New Economic Models
• Models: Today – interesting examples of public, private, third sector collaborative models
• How? Explore what they doing and how they achieved it;
• What can we learn? Key elements for achieving success and what to avoid!

• Collaboration isn’t easy, patience & time!
• Stakeholder Engagement: Identify, communicate, facilitate
• Define Objectives then Model to suit:
Informal, Umbrella, Producer run,
Commercial
• Coordinator: facilitate vision, maintain focus
& momentum, explore new possibilities & ensure member commitment
• Advice: Legal, Finance, Business Planning
• Finance: Community Investment?
Crowdfunding, CSA model, Startup/development grants – RDPE?

A family-run business box scheme
40,000+ customers, farm shop, restaurant
1998 South Devon Organic Producers’ Co-
op (SDOP): wider variety of produce, continuity of supply and the potential to expand the box scheme, co-ordinated & specialized crop production, facilitate communication & good working relations.
Other Family members: dairy, butchery, farm shop.
Franchise model: recruit customers & deliver boxes in a local area.

• Riverford Farm has developed in
Devon an innovative model of local food provision, with 4 key elements:
• A core farm, with a main focus on salad vegetables.
• A packing and distribution centre, based at the core farm, with the capacity to process up to 25,000 boxes per week.
• A network of vegetable farms working together through a supply cooperative headquartered at the core farm.
• A network of franchisees, who market Riverford, recruit customers and deliver the boxes to homes

• Value: Av. 20% cheaper than Tesco, Waitrose and
Sainsbury’s, best value boxes outstripping supermarket org. equivalent <40%
• High Customer Turnover: Marketing challenging
(+ competition Abel & Cole, Ocado)
• Internet / Festivals: Variable success in securing and retaining new customers, so Riverford now recruiting directly: internet, shows, festivals, etc.
• Box schemes: require ‘cook from scratch’ skills & motivation
• Community: Mixed ‘local’ reputation, too big & remote from the customers it serves? Lots of opportunity to develop this base.
• Recent Growth: Strong market growth last 3 years (10.3% 2013 / 17.9% 2014), organic comeback, new recipe boxes, social media community, Guy PR & blogs, new London base
/pub, business efficiencies.

• Food For life (FFL): Ethos & principles built into requirements. contractors know what expected of them.
• Gold FFFL Catering Mark: Local, seasonal,
‘cook from scratch’ + MSc + Organic;
Recognition, Build into contracts,
Embedded into service (staff, stakeholders), Educational, School
Commitment 30% increase uptake
• Price: “We were able to contain whatever changes there were in costs – it was really just a few pence here or there – and maintain no overall increase in our prices.
• Local Suppliers: Good support, offered alternatives when needed
• Structure: New cooperative trading company owned 51% PCC 49% schools.

 Three local suppliers covering all requirements
 All have a presence in Devon and Cornwall
 Road miles and carbon footprint significantly reduced
 Increased contract spend into Plymouth and surrounding area by up to £1.6m per annum
 High quality local produce
 Shared deliveries
 Food costs per meal maintained
 Meal numbers up

• CSA: A Partnership between producer & citizen sharing risks and rewards of production
• 4 types: producer-led, community-led, joint partnership, community owned.
• Tips for success: Start small, involve all stakeholders from start, define values and aims, core group with clear responsibilities, regular communications, define contract, access to farm, diversity market outlets, extend seasons, cooperate other farmers, listen to members requests.
• Knowledge transfer: All businesses can learn alot from this stakeholder engagement

• Recognition that some community services best delivered through a business model, greater autonomy for communities
• Encouraging people to become members, through a share offer, can bring about a host of benefits
• Historic shift in financing community enterprises: from fundraising approach
(events, gifts, donations) to investment in community shares
• Community Shares website: www.communityshares.org.uk

Trade sector
Renewable energy
Community shops
Community regeneration
Food & farming (CSAs)
Post 2009 societies
34
20
14
Consumer co-operatives
Pubs and brewing
Community finance
Community land trusts
Fair trade
Other
18
-
10
1
7
2
9
Totals 115 (27)
Pre 2009 societies
Members Share capital
13 8,831 £15,304,000
9 2,492 £903,000
9 3,041 £1,908,000
4 10,228 £1,171,000
20 8,553,000 £191,275,000
2 687 £733,000
9 1.837
£2,114,000
2 318 £25,000
1 9,222 £26,151,000
9 38,530
78 (75) 8,629,000
£7,345,000
£247m

• Collaboration: access to different markets, share risks and costs
• Processing, Branding: Honey Coop, extraction & bottling equipment, shared label, marketing
• Economies of scale: Reduce costs by sharing equipment, Bulk purchasing etc.

‘First tier’ projects
Apiaries
Orchards
Community Growing
CSA
Livestock Co-ops

Food Hubs
Customers: 185 members
8 hubs / collection points
(2 in Plymouth) + Home delivery
Pricing: 15% commission from producers
30% mark-up on wholesale
Producers: 45 active local producers
Includes TGL community groups

TGL provides:
Collective Identity
Strategic management
Shared Insurance
Shared bank account
Advice & Experience
Community
Tamar Grow Local CIC
‘Second tier’ projects
Produce Co-ops
Equipment Bank
Markets & Food Hubs
Training & Events
Distribution
Local Producers
‘First tier’ projects
Apiaries
Orchards
CSA
Livestock Co-ops
Community Growing

• Business focus: community-owned social enterprise, growing and selling organic food through a box delivery service. CSA production, distribution/sales
• Location: 11 acres in the Chew Valley, six miles south of Bristol, land owned by Luke
Hasell, organic livestock farmer.
• Legal structure: IPS for Community Benefit,
500 members, through a community share issue.
• Background: Took over veg growing business, formerly Better Food Company, a shop in
Bristol. Produce is sold through a vegetable box scheme (approx. 360 customers) produce also supplied to wholesale customers including local restaurants, cafes and other businesses

• Scaling-up strategies: The Community Farm plans to expand the acreage under production, at the existing site.
• People: Good staff team. Would like more volunteers, but time-consuming to organise and transport is difficult.
• Land: potential issues around security of tenure, but confidence that there will be a renewal.
• Equipment/Workspace: Key area. Need more equipment, e.g. tractor, polytunnels.
• Finance: Raised £180K through initial share offer, income now a mix of box scheme sales and grants for educational work, opening up for gifts & donations soon to support this.
• Education & community: Events, volunteer, school & corporate days, members –a big part of their ethos and work.

• Business focus & supply chain
location: Exeter’s first community owned food business, urban based retail operation, with a shop, café, take away counter and in-store bakery.
• Legal structure: Owned by Exeter
Local Food Ltd, IPS (for community benefit) over 300 members, one of the largest community-owned food enterprises in the country.
• Sourcing: 70% producers Devon, almost 100% SW, when outside area always fairtrade & organic.

• Bkgd: Transition Exeter in March 2009 at a public meeting about local food. resolutions to create a food hub in the city, small working group was established to produce Business Plan.
• Process: Advice from Wessex Community
Assets, which registered Exeter Local
Food as an IPS with FSA, in December
2009, for community share issue.
• Prospectus: prepared & share offer launched June 2010, inviting people to invest in Exeter Local Food Ltd.
• Opened: September 2010 over £153,000 raised and Board able to prepare for the opening of the business. The Real Food
Store began trading on 30 March 2011 and is open Mon-Sat 9-6pm.

Staff / Investment: Not sustainable at the present level of operation – can’t afford to take on more staff.
Building a customer base: 300 investormembers, regular communication through a website, twitter, facebook, ning group
Staff engagement: need to do more staff training; none of the staff are investor members;
Members as volunteers: not currently requesting members to contribute volunteer labour
Sustainability: Achieving closed loop.
Produce that is near its sell by date can be used in the café.

• New economic & governance
models: lots of case studies and resources now out there
• Customers, stakeholders..
Citizens! need to consider relationships differently, here lie the opportunities, social media important role to play here
• Big job: Don’t underestimate the time it takes, need to be clear on everyone’s objectives, plan, get advice & when start commit to it